G.R. No. 149145 ; March 31, 2006
ROMAN CATHOLIC BISHOP OF KALIBO, AKLAN, represented by BISHOP JUAN N. NILMAR, Petitioner, vs. MUNICIPALITY OF BURUANGA, AKLAN, represented by the HON. PROTACIO S. OBRIQUE, Respondent.

FACTS

The Roman Catholic Bishop of Kalibo filed a complaint for declaration of ownership and quieting of title over Cadastral Lot No. 138 in Buruanga, Aklan. The petitioner claimed ownership, alleging the lot contained a church built in 1894 and that the Municipality had constructed its municipal building thereon in 1978 only with the permission of the parish priest, under a promise to vacate when needed. In 1989, after a fire destroyed the municipal building, the Bishop demanded the Municipality cease reconstruction for the Church’s social action projects. The Municipality refused, asserting absolute ownership.
The Municipality of Buruanga defended its title, presenting evidence that the lot was surveyed in its name in 1909 under Act No. 926, a decree was issued in its favor by the Court of Land Registration in 1919, and it had possessed the land openly and exclusively for over fifty years. The Regional Trial Court ruled in favor of the Municipality, declaring it the absolute owner. The Court of Appeals affirmed this decision but modified it by recognizing the Church’s right to a specific portion where the church building stood, based on the Law of the Indies.

ISSUE

Whether the Court of Appeals erred in declaring the Municipality of Buruanga the absolute owner of the disputed lot and in applying the Law of the Indies to grant the Church a portion thereof.

RULING

The Supreme Court affirmed the Court of Appeals with modification. The Municipality of Buruanga is declared the absolute owner of the entire Lot No. 138. The legal logic rests on the conclusive nature of a Torrens title. The Municipality proved its ownership through a valid decree of registration issued in 1919 under the Land Registration Act. This decree, having become final and incontrovertible, vested indefeasible title upon the Municipality. The petitioner’s claim, based on alleged Spanish-era grants and possession, constituted a collateral attack on this title, which is prohibited. A Torrens title cannot be impeached except in a direct proceeding for fraud within one year from decree.
The Court of Appeals erred in applying the Law of the Indies to carve out a portion for the Church. This ancient law was abrogated by subsequent Philippine laws, specifically the Maura Law and the Public Land Act. More critically, the 1919 decree in favor of the Municipality already settled ownership conclusively. Any right the Church might have had was extinguished by this registration, which binds the whole world. The principle of indefeasibility of a Torrens title prevails. Therefore, the Municipality’s ownership over the entire lot is absolute, and the Church’s claim, having been raised decades after the decree became final, is barred.